CPI  The Non-Seasonally Adjusted US City Average All Items Consumer Price Index for AllUrban Consumers (CPI-U),
published by the Bureau of Labor Statistics of the US Departmentof Labor. Historical CPI fixings are available at http://www.bls.gov/cpi/tables.htm. Theannual percentage growth rate of the CPI-U is the most commonly cited measure of consumer price
inflation in the USA.

CPI(t)  The Index level for the month three months prior to the Payment Date.

CPI(0)  The Index level for the month three months prior to the Issue Date.

Hypothetical Examples for Monthly Payment per unit

Assume CPI(0) for an IILP Note is 217.

Example 1:

If CPI(t) is 230, the CPI Ratio is 230/217 = 1.0599, so the payment for the month will be

$100 x 1.0599 = $105.99

Example 2:

If CPI(t) is 217, the CPI Ratio is 217/217 = 1.0000, so the payment for the month will be

$100 x 1.0000 = $100.00.

Example 3:

If CPI(t) is 210, the CPI Ratio is 210/217 = 0.9677, so the payment for the month will be

$100 x 0.9677 = $96.77.

3

Who May Be
Suitable to Invest In Inflation-Indexed Level-Pay Notes

Those who are in retirement and want immediate income
to cover fixed ed living expenses that

might rise with inflation as measured by the Consumer Price Index
(CPI).

Those who are nearing retirement or are in early retirement and want inflation-adjusted
income

for a certain period of time until other sources of retirement income begin.

Those who have retirement expenses that rise with the cost of living and could exceed

anticipated income from Social Security and pensions.

Those who want to reduce exposure to inflation and uncertainty around cash flows in

retirement to gain comfort in discretionary spending.

Those who would like a steady inflation-adjusted source of income for themselves, their

spouse/partner, or heirs.

Those who would like the potential to be more aggressive with other investments.

Those who would like to earn a return on their retirement income with inflation-adjusted

payments.

4

INFLATION-INDEXED LEVEL-PAY NOTES

Hypothetical Scenarios

Example 1

Peter Hu retires early at 50. His company pension will start paying him at t 65, at which time he

also plans to withdraw from his 401(k). Until then, he wants to set aside cash from his savings

to cover his rent, energy bills, and groceries. These costs currently total $3,000 per month, but

he expects they will rise with the general cost of living. He uses some of his savings to buy 30

units of a 15-year Barclays IILP Note, which generates a monthly payment that starts at $3,000

and will scale up or down in line with changes in the Consumer Price Index, paying for the next

15 years, until he turns 65.

50 65

IILP Note payments

Pension payments that include a cost of living adjustment

Savings used to cover variable expenses

AGE

5

Example 2

Mary Thomas retires at 60 and withdraws a lump sum from her 401(k). In retirement, she projects that her fixed
monthly expenses will be $3,500 for her rent, groceries, and day-to-day living needs, but she is concerned that those expenses may rise with inflation. She uses some of her lump sum to buy 35 units of a 30-year Barclays IILP Note, which generates a
monthly payment that starts at $3,500 and will scale up or down in line with inflation, paying for 30 years, until she turns 90. She uses other money to cover discretionary expenses, and to buy longevity insurance that will provide income to her if
she lives beyond 90. If she passes away before she reaches 90, the longevity insurance will typically expire worthless, but the remaining value of the IILP Note will be passed on to her heirs.

60 90

AGE

IILP Note payments

Longevity insurance payments (if Jane lives past age 90)

that include a cost of living adjustment

Savings and proceeds from 401(k) used to cover variable expenses

6

INFLATION-INDEXED LEVEL-PAY NOTES

Example 3

George Parker, 70, is in retirement and has been living off his Social Security payments and

savings. He lives on a budget of $5,000 per month, with $1,000 coming from Social Security and

$4,000 coming from his savings. He is comfortable taking risk to try to grow the money that he

isnt planning to spend until after he is 85, but over the next 15 years he doesnt want to have his

budget fluctuate with the ups and downs of the market. He also is concerned that increases in the

cost of living will mean hell need more than $4,000 per month to maintain his standard of living

in the future. He uses part of his savings to buy 40 units of a 15-year Barclays IILP Note, which

generates a monthly payment for the next 15 years that starts at $4,000 and will scale up or down

in line with the Consumer Price Index. He feels more comfortable taking risk with the remainder of

his savings, confident that his budget will be covered at least until he is 85, and he feels protected

Monthly payments may be less than $100 per unit if the cost of living decreases relative to the level of the CPI when the
notes were issued.

IILP Notes are the senior unsecured obligations of Barclays Bank PLC, and any payment on
the IILP Notes is subject to Barclays Bank PLCs ability to pay its obligations as they become due. IILP Notes are not, either directly or indirectly, an obligation of any third party.

The IILP Notes will not be listed on any securities exchange. Barclays Capital Inc. and other affiliates of Barclays Bank
PLC intend to make a secondary market for the Notes but are not required to do so, and may discontinue any such secondary market making at any time, without notice.

The IILP Notes are not designed to be short-term trading instruments.Accordingly, you should be willing and able to hold
your IILP notes to maturity.

IILP Notes pay principal over time, so the remaining value of an IILP Note is
only in terms of principal that has not already been paid back to noteholders.

IILP Notes are designed to be
held to maturity; therefore, you may not receive the full remaining principal amount if you sell the Notes prior to maturity.

Market factors, including inflation expectations, the level of interest rates, issuer credit risk, volatility, and
liquidity, may influence the value of the IILP Notes prior to their stated maturity.

3 Barclays does not
guarantee a market for the IILP Notes will exist and, depending on market conditions, you may not be able to sell your IILP Notes. If you sell your IILP Notes prior to maturity, you may have to sell them at a substantial loss.

8

INFLATION-INDEXED LEVEL-PAY NOTES

Frequently Asked Questions

What are Barclays Inflation-Indexed Level-Pay Notes

Barclays Inflation-Indexed Level-Pay Notes (IILP Notes) are senior, unsecured, unsubordinated debt securities issued by
Barclays Bank PLC. They are designed to provide investors with a monthly cash flow that keeps pace with inflation until maturity.

How do I buy an IILP Note

IILP Notes can be purchased through a broker or by an investment advisor on your behalf.

How do I liquidate an IILP Note prior to maturity

Investors or their investment advisors can sell IILP Notes in the secondary market during trading hours via a broker,
subject to the availability of a market. See Risks relating to the existence of a secondary market.

Do the IILP Notes offer principal protection

No. If the cost of living goes down, a principal payment may be scaled down below its original value. Investors also might
not receive their entire remaining principal if the IILP Notes are sold prior to maturity.

Who is Barclays
Bank

Barclays Bank PLC is a major global financial services provider engaged in retail and commercial banking,
credit cards, investment banking, and wealth management services. Barclays Bank PLC operates in many countries around the world. The whole of the issued ordinary share capital of Barclays Bank PLC is beneficially owned by Barclays PLC, which is the
ultimate holding company of Barclays Bank PLC.

Barclays Capital Inc. will act as the issuers agent in connection with the distribution of the IILP Notes. Barclays
Capital Inc. is an affiliate of Barclays Bank PLC and is a registered US broker-dealer regulated by the SEC and FINRA.

Are Barclays IILP Notes registered

Yes. The IILP Notes are registered under the Securities Act of 1933, as amended.

How are IILP Notes taxed

For a complete discussion of how these Notes are taxed, please see the relevant offering documents filed with the SEC,
available at:

Barclays Bank PLC has filed a registration statement (including a prospectus) with the SEC for the offerings of the
securities identified above. Before you invest, you should read the prospectus dated August 31, 2010, the relevant prospectus supplement relating to the securities, and other documents Barclays Bank PLC has filed with the SEC for more complete
information about Barclays Bank PLC and the offerings identified above. Buyers should rely upon the prospectus, the relevant prospectus supplement, and any relevant free writing prospectus or pricing supplement for complete details (including the
risk factors relating to the offering). You may get these documents and other documents Barclays Bank PLC has filed for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Barclays Capital Inc., Barclays Wealth or any agent or
dealer participating in this offering will arrange to send you the prospectus, prospectus supplement, any final pricing supplement and any free writing prospectus, if you request it by calling your Barclays Capital Inc. or Barclays Wealth sales
representative, such dealer or 1 888 227 2275 (extension 2-3430). A copy of the prospectus may be obtained from Barclays Capital Inc., 745 Seventh Avenue  Attn: US InvSol Support, New York, NY 10019.